Jobless Claims Decline to Lowest Level Since January 1973

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U.S. filings for unemployment benefits unexpectedly fell last week to the lowest level since January 1973, further evidence that the labor market remains tight, Labor Department figures showed March 29.

Highlights of Jobless Claims for the Week ended March 24

• Four-week average of initial claims, a less-volatile measure than the weekly figure, fell to 224,500 from the prior week’s 225,000.

Key Takeaways

Claims at the lowest level in 45 years underscore a persistent shortage of qualified workers that has made employers reluctant to fire staff. Applications for jobless benefits below the 300,000 tally are typically considered consistent with a healthy labor market.

Other aspects of the job market remain robust, with payrolls continuing to exceed expectations and an unemployment rate near the lowest since late 2000. Steady employment will help to sustain consumer spending, the biggest part of the economy.

The report reflects the annual revision to seasonal adjustment factors for initial and continuing claims from 2013 to present.

Other Details

• Prior week’s reading was revised to 227,000 from 229,000.

• Unemployment rate among people eligible for benefits held at 1.3%.

• Colorado, Maine and Hawaii estimated initial claims last week, according to the Labor Department.